Reality – money comes and goes; more important is how you manage your money. It was a long time ago when I learned how money works; rule 72 was an eye-opening. Rule 72 is an easy way to determine how long it takes to double your funds; it is based on an annual percentage divided by 72, which will be equal to the number of years it takes to see real overtime growth. That is, say, an investment of 1 thousand Annual return is 1.0%, which is more than what your bank now pays; it will take 72 years for your funds to double. (72/1 = 72 years). The money will grow to only 2,000 in 72 years.
Now, taking the same 1K that is properly invested in the financial markets at 10%, which has been the average in the past, in order for your funds to double, it will take 7.2 years. So in that 72-year period you would have 10 doubling periods or $ 955,594 for just under $ 1 million; not bad for 1K. Have you ever wondered why local and national banks have a plush atmosphere and a marble floor? We must learn to manage our finances; budgeting, costs and savings; it’s all part of the stewards ’wisdom and responsibility.
Over the years, many of us have made mistakes with money; let it be through long credit, poor financial management, burial in debt; either by kidnapping various financial advisers or a fraudulent artist. To understand our finances, we need discipline to do the right things and refrain from frivolous pointless bad habits. In the last few weeks with this Crown virus pandemic, I’ve seen people foolishly spend their money and make money. buying more than what he would normally need any day. The world is not coming to an end. Spread your funds on the table and get everything you need to make ends meet. No need for a crisis to draw our attention to our finances, this should be a year-round process of how to properly manage money.
It is at such times that it draws our attention to slow down and think things through before acting impulsively. Also, this is another way God draws our attention; for those of us who believe that He is the true and living God. He is in control of the whole situation and has the whole world in his hands. The goal of each person, if he or she is aware of how to manage his or her finances, should include, but not be limited to: purchasing life and health insurance products, having legitimate sources of income through diversification of multiple real estate assets, have a basic understanding of how buy low and sell high or at least break-even; or make a profit at any business venture you can make. Last but not least, you are advised by proven reputable professional financial advisors, “to help manage large financial portfolios”.
The truth behind money is knowing how to manage it properly, living within our means, and peace of mind, soul, and spirit. We need to learn from our mistakes and be a blessing to others who may lack both the finances and the knowledge of how to have more than enough. Share your education with others to help them change their thinking from a mentality that thinks about poverty, and accordingly increase their wealth. Time will allow your money to start working for you; instead of working for money!